Obviously taking large chunks out of circulation can only enhance buying pressure if the supply dries up, but at the same time, we certainly don't want to take 3M CUB out of circulation and get to a point where there's no liquidity to buy anything either. The idea is to increase distribution, not cut it down to where only a few hold most of the supply.
Still some logistics to be worked out on how this all works. I'm not sure if it's been talked about (or if it's even possible), but maybe a better way to do one of these IDOs would be to raise the money in strictly BUSD and then the CUB team can take their half and buy the CUB off the open market. That would at least enable the price to be stabilized at a certain level. The problem with that solution though is that there would have to be some trust involved in handling all that money. It would probably be pretty tempting to use some of that cash in other places.
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So, who knows? All of this is very theoretical right now and I'm sure the team is learning a lot as we go. Hopefully they can find the right way to go about this where we are burning lots of Cub but also helping support higher prices. Like I said, if the majority of the CUB coming into these IDOs is coming from HODLers accounts, then the burn isn't really accomplishing anything other than probably moving the APY's back up in the Kingdom Den and the other CUB pools. As it is, the only CUB really being burned this time around is CUB that was never going to hit the market at these low prices anyway....
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